All Forum Posts by: Lucy Balyan

Its up to you to make money. Fastest way is Hml's which include rehab costs up to 100%. Purchase up to 80%. If you can't afford the loan at 11% (hml), then sell it for $1.7m but you do the work & get paid for it. Just make sure you do it with contract with buyer.

Finding someone who will give you $100k may take longer.

Think like this:

Buy House is $150k plus rehab $100k, ARV $750k; you make $500k minus closing costs, interest, holding costs.

Sell package: $1.4m, sell at $1.7k, you make $300k plus $100k rehab;

Question is 

do you have the 20% down on the  $150k ?

Anyone doing JV in Atlanta for out of state investors?

Try San Antonio if you have $50k cash to buy house outright from revitalizing areas, rehab them to rental grade or slightly higher for flip. If you need cash to buy & close in 10 days or less, borrow money from family, credit cards, credit lines, home equity. Last draw is HML.

@Rick Pozos - thanks for the support & info & for speaking up.

@Rick 

@Rick Maningas

For my education, I scheduled a contractor to meet me when I am there just to give me bids on the interior/exterior part of the work. 

I called a roofer from Home Advisor.com to go there on Monday via appt to provide estimate, I never heard back from him. I called and left messages. Weird!

@Rick Maningas I just found out I am not splitting net profits 50/50 at all; 

it was just the construction cost of $40K ($35K with $5K for cushion for unknown) and the 1% realtor fee for himself for when John sells the property. On his website, he mentions splitting down the middle and making $8 to $10K per deal but I never actually signed anything that said 50/50 split. I only signed the construction cost and the email for the 1% realtor fee.

It wouldn't make sense to do $40K rehab (which includes $1500 mgmt fee) plus the 50/50 split of net profits plus the 1% realtor fee for selling the property. If he did all this, it would be my last deal with him.

@Anish Tolia, thanks for the good luck!

@Rick Maningas

my funds are limited and I always liked San Antonio. My family lives in Texas. I know it was risky but I have faith it will turn out good with patience and not upgrading too much; Once we get over the foundation hurdle (damn rain) and roof, we are good to go on the interior. I know many people run away; The area has homes prices from $30K to $200K in 78203. It is revitalizing and close to bus stop, downtown and 2 major highways. I was only looking to make about 15% return on this investment. The important thing is that the contractors show up and actually work. This is why I have a project manager named John Majalca do it for me since I am not there. I did speak to his references. Patience. Good thing I bought it all cash, not HML!

Hi all, the foundation issues are being worked on (piers & beams). So far $5k for raising foundation & 30 pillars. Another $4k for replacement beams & joist. The entire rehab will be $40k. Purchase was $34k. ARV is min $99k.

I did a JV with experienced investor/realtor/wholesaler. I could not afford more than $50k purchase with $25k rehab.

Thanks for Rick Maningas for speaking up & supporting.

What bothers me is that I gave him $10K to start foundation and roof work; due to rain, this work was delayed until 2 weeks ago; he said 'good news, we are ready to start foundation work and I will send you photos on Thursday/Friday' and 'I will be meeting with roofer tonight, materials have been ordered and double crew scheduled to make up for lost time due to rain. He asked for the additional $15K because 'materials has been ordered and crew is ready to go'; then come to find out after the check was cashed, he comes back a day later and says there is a foundation problem which will cost $4k additional due to rotted beams.

So basically all they did was clean out the trash and raised the foundation and found issue with rotted beam/piers and he has my $25K.  I told him I am not going to pay another penny until the work is done because he has plenty of $$ to cover foundation and roof and more.

I am also seeing a realtor to give me estimate of home value after renovation is completed. I am not changing floor plan. I will be contacting a lawyer to do a JV contract; I am not paying a penny more.

Hi, thanks for the advice. I do have an estimate from the current contractor via email that says something like this:

Foundation, 5k

Roof $3k

HVAC $3k

Bring plumbing & electrical up to code, $5k

Landscaping $600

Cabinets/granite $3000

Paint in & out $5k

Etc.....

6 more line items totalling $35k & a cushion for $5k = $40k.

There was a name of the subcontractor too but now I can't find the email. I asked contractor to resend it, so far he has not. I sent him email asking for JV contract & if I need to see lawyer to do it.

He hasn't replied yet. The 2nd estimate for foundation scheduled may 26. Are there contractors that do everything other than foundation like roof & plumbing , electrical, interior & exterior paint, cabinets & carpets, laminate, counter tops, etc.